Federal government invests in green steel making in Hamilton

François-Philippe Champagne, Canada's Minister of Innovation, Science and Industry, has announced a $400 million federal contribution towards a planned greening of ArcelorMittal Dofasco's steelmaking operations in Hamilton.

A planned “greening” of its steel making operations will mean a dramatic transition at Hamilton’s ArcelorMittal Dofasco in the coming years.

The steelmaker plans to shut down its coke ovens and blast furnaces by 2028, in favour of expanded use of electric arc furnace technology, as it switches from coal to a natural gas-based steelmaking process.

François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, calls it an environmental “game-changer.”

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“This project, alone, is expected to reduce greenhouse gas emissions by three million metric tonnes per year once the project is completed,” said Champagne, “the equivalent of taking one million cars off the street.”

Read more: Significant air emission at ArcelorMittal Dofasco under investigation

Champagne announced on Friday morning that the federal government is investing $400 million towards Arcelor Mittal Dofasco’s $1.76-billion transition to “green” steelmaking, however, the project is still contingent on a yet-to-be-announced provincial funding contribution.

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Aditya Mittal, CEO of ArcelorMittal, said the plan represents a “historic moment” for the company, marking the “beginning of a new era of steelmaking” in Hamilton.

He added that the company’s ambition is net-zero carbon emissions by 2050.

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Eventually, the company hopes for a future transition to green hydrogen-fueled steelmaking. Mittal said that will be possible once “hydrogen becomes abundant in supply and costs are reasonable.”

Once the project is completed, Champagne predicted that “the competitiveness of this facility will be solidified for decades to come, and will secure the presence of ArcelorMittal in Hamilton for decades to come.”

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